23XI and FRM file motion to probe F1’s finances for NASCAR lawsuit

23XI Racing and Front Row Motorsports have been busy over the last two weeks filing court motions to convince various sports leagues to comply with previously issued subpoenas for the teams’ ongoing lawsuit against NASCAR. Among these was a motion filed in the US District Court of Colorado on April 7th to compel Liberty Media — which owns Formula 1 — to comply with a subpoena for documents that could be useful in their ongoing legal bid to challenge the France family’s hold over NASCAR.

The teams are asking for financial information from the F1 ownership group as they gather examples of how other series operate to help them in their lawsuit against NASCAR, aiming to prove that the France family has been operating it as an unlawful monopoly and violating antitrust laws. This is commonly referred to as the ‘yardstick method’ in legal circles, used to prove economic damages in suits of this nature.

Mohammed Ben Sulayem, President, FIA, Greg Maffei, CEO, Liberty Media

Photo by: Simon Galloway / Motorsport Images

As for Liberty Media and F1, they want specific revenue numbers for nearly every aspect of the sport, how the revenue is split between F1 and its ten teams,  and the complete Concorde Agreement (which is a contract between F1, the FIA and teams that regulates the financial side of the sport). 

What 23XI and FRM want from Formula 1

Specifically, the teams are requesting detailed F1 revenue numbers involving broadcasting, sponsorship, tickets, seat licensing, concessions, merchandise, intellectual property, expansion fees, franchise sales, gambling, facility/locations, internet programming, and signage. The filing goes into further details with 23XI and FRM specifically requesting the production of documents relating to the following elements:

– “Documents sufficient to show the number of tickets sold for each Formula 1 and/or Formula 1 Team event, number in attendance at each Formula 1 and/or Formula 1 Team event, and broadcast ratings of each Formula 1 and/or Formula 1 Team event during the Relevant Time Period.”

– “Documents sufficient to show the number of tickets sold for each Formula 1 and/or Formula 1 Team event, number in attendance at each Formula 1 and/or Formula 1 Team event, and broadcast ratings of each Formula 1 and/or Formula 1 Team event during the Relevant Time Period.”

– “Documents sufficient to show the Revenues and any other value Formula 1 receives or derives from Formula 1’s and Formula 1 Teams’ intellectual property.”

Max Verstappen, Red Bull Racing leads at the start

Photo by: Bryn Lennon – Formula 1

– “Documents sufficient to show the Revenues and any other value Formula 1, Formula 1 Team(s), or other Entities or individual(s), including owner(s) of Formula 1 Team(s), has or expects to receive or derive from the sale, expansion, or change of control of any Formula 1 Team(s) during the Relevant Time Period.”

– “All Documents and Communications relating to any research, study, analysis, and estimate on the value of Formula 1 Teams or the value of any charter, franchise, and license for Formula 1 Teams during the Relevant Time Period.

– “The Concorde Agreements entered, negotiated, and in effect during the Relevant Time Period.”

– “Formula 1’s constitutions, bylaws, and other rulebooks Relating to Formula 1 and Formula 1 Team financial arrangements, operating procedures, rules, and guidelines.”

Liberty Media is not alone in this. The two race teams filed a similar motion in the US District Court of New York City to compel the NFL, NBA, and NHL to provide similar financial information.

Background

23XI, co-owned by NBA legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin, joined with Front Row Motorsports to stand against what they believed were unfair terms in NASCAR’s 2025 Charter Agreement. They refused to sign it and quickly took legal action in an antitrust lawsuit that has been playing out since September of last year. One of the core parts of their argument is that NASCAR operates as an unlawful monopoly.  They accuse the France family, whose members have run the sport since its inception in 1948, of showcasing “anti-competitive and monopolistic control of the sport.”

Denny Hamlin, Michael Jordan

Photo by: Chris Graythen – Getty Images

While the trial is still months away, the teams have fought to keep control of their charters, which they successfully did via a preliminary injunction that was granted in December of last year. The legal fight has also led to NASCAR filing a countersuit, accusing them of an unlawful conspiracy and also violating the Sherman Antitrust Act.